Irfan Amanat is facing a federal indictment over a sprawling financial fraud scheme that bled millions from investors in KIT digital and Maiden Capital. Prosecutors unsealed charges today alleging Amanat orchestrated a web of lies to conceal the loss and misappropriation of over $2 million in investor funds tied to Enable, an investment vehicle he at times controlled. The scheme targeted auditors, shareholders, and federal regulators — all while Amanat allegedly kept the fraud machine running.
Amanat, brother of Omar Amanat and associate of former KIT digital CEO Kaleil Isaza Tuzman, was arrested this morning in Pine Brook, New Jersey. He is expected to appear in Manhattan federal court before a U.S. Magistrate Judge. Authorities accuse him of securities fraud, conspiracy to make false statements in SEC filings, and lying to auditors about the health of KIT digital’s investment in Enable. Instead of disclosing the losses, he allegedly claimed the investment was earning steady interest — a lie meant to prop up confidence and delay exposure.
U.S. Attorney Preet Bharara didn’t mince words: “As alleged, Irfan Amanat lied to auditors, investors, and the SEC about millions of dollars of KIT digital and Maiden Capital funds that were lost and misappropriated.” Bharara added that Amanat now faces multiple counts of federal fraud. The case underscores a pattern of deception involving shell-like financial arrangements and deliberate obfuscation of failing assets.
The FBI and U.S. Postal Inspection Service jointly led the investigation. FBI Assistant Director-in-Charge William F. Sweeney Jr. said Amanat played “cat and mouse with shareholders’ money” but ultimately couldn’t outrun justice. Philip R. Bartlett, USPIS Inspector-in-Charge, emphasized that Amanat continued soliciting investor funds even while knowing Enable was insolvent — then lied in annual reports to cover the theft.
The fallout extends beyond Amanat. Stephen Maiden, head of Maiden Capital, has already pled guilty to his role in manipulating KITD’s stock and defrauding investors. He’s now cooperating with federal prosecutors. Meanwhile, Kaleil Isaza Tuzman was extradited from Colombia in July 2016 after arrest on fraud and market manipulation charges. Omar Amanat was also arrested in July 2016 on related charges, including aiding and abetting Maiden’s fraud. Both remain free on bail ahead of a scheduled October 2017 trial before Judge Paul G. Gardephe.
Federal authorities are sending a clear message: financial predators who exploit public markets and investor trust will be hunted down. With wire fraud, securities fraud, and investment adviser fraud charges stacked against him, Irfan Amanat now faces years behind bars if convicted. The case lays bare the rot that can fester in high-flying startups and shell investments — and the federal machinery ready to tear it apart.
Related Federal Cases
- Shawn Hilliard Gets 12 Years for $1.3M Bank Fraud Scheme · Pennsylvania
- Norman D’Souza Sentenced in $18M Loan Fraud Scheme · New Jersey
- Michael Conway Busted in $4.5M Lease Fraud Scheme · New Jersey
- Habib Chaudhry Nabbed in $200M Credit Card Fraud Scheme · New Jersey
- Patrick Giblin Admits to Dating Scam Fraud Scheme · Pennsylvania
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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